Attorney General’s Medicaid Fraud and Vulnerable Victims Unit Secures a $1,289,679 Settlement and Corporate Oversight of Elkton Nursing and Rehabilitation Center in Cecil County

Published: 4/7/2025

​FOR IMMEDIATE RELEASE​ 

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BALTIMORE, MD – Attorney General Anthony G. Brown today announced a $1,289,679 settlement with Elkton SNF, LLC and Elkton Health Holdco, LLC d/b/a Elkton Nursing and Rehabilitation Center (Elkton) to settle allegations that the entities violated the Maryland False Health Claims Act by providing substandard care to residents at Elkton Nursing and Rehabilitation Center. 

The facility came to the office’s attention in 2022 after a concerned citizen contacted the Medicaid Fraud and Vulnerable Victims Unit (MFVVU) with information. The settlement includes $400,679 paid by Elkton to fund a quality improvement plan in which the Office of Attorney General will oversee the facility for three years through regular performance evaluations by a third-party monitoring company. It also includes $889,000 in restitution to the state. 

“Every Marylander deserves compassion, dignity, and respect, including our most vulnerable residents who rely on nursing facilities like Elkton,” said Attorney General Brown. “This action serves as a warning that my Office will not stand by while nursing facilities fail to provide quality care to those who need it most.” 

Today’s announcement marks the culmination of the investigative efforts by MFVVU including: 

  • Interviews of former staff and residents; 
  • Review of survey reports from the Office of Health Care Quality documenting myriad deficiencies; 
  • Analyzing facility staffing levels, personnel, and resident census documents; and ·
  • Obtaining and reviewing resident medical records. 

These foundational endeavors were later expanded to incorporate a new “strike force” approach in which the MFVVU partnered with the Maryland’s Department of Human Services, Office of Adult Services, Adult Protective Services Program, and the State Long-Term Care Ombudsman to create a unified response to systemic failures in long-term care, employing unannounced visits to Maryland facilities to quickly assess and respond to the needs of residents.

The investigation uncovered: 

  • ​Significant understaffing; 
  • Serious wound care deficiencies; 
  • Regulatory violations compromising patient care; 
  • Numerous preventable falls; 
  • Avoidable nutritional and hydration deficits; and 
  • Failures to respond to residents’ change in condition. 

The MFVVU determined that these deficiencies were a signal that the Medicaid recipients residing at the Elkton facility were receiving such substandard care that taxpayers, who paid for the care through the Medicaid program, were being defrauded. To ensure that the care at the facility improves, the MFVVU insisted on the quality improvement agreement as part of the monetary settlement. The quality improvement agreement allows the state to monitor relevant facets of the facility’s day-to-day operations on a regular basis, through the third-party monitoring activities and unfettered access to corporate documents, medical files, and staff at the facility. Where continuing problems are uncovered, the facility must make improvements or risk further legal action. 

In making today’s announcement, the Attorney General thanked his Medicaid Fraud and Vulnerable Victims Unit, particularly Unit Director Zak Shirley; Assistant Attorney General Louise Lock; Investigators Carl Stambaugh, Michael Glenn, and Antonnio Hopson; and Fraud Analyst David Minzer for their work on the case. Attorney General Brown also thanked the Maryland Department of Human Services and the Maryland Department of Aging for their coordinated efforts in this matter. 

The Maryland Office of the Attorney General, Medicaid Fraud and Vulnerable Victims Unit receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $6,845,828 for Federal fiscal year (FY) 2025. The remaining 25 percent, totaling $2,281,939 for FY 2025, is funded by the State of Maryland. 

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